Resources featuring Radhika Narang

Q1 2026 Factor Performance Analysis

Global equity markets experienced broad-based weakness in March 2026, with all major regions declining amid a shift in investor sentiment toward a more risk-off stance. Concerns around inflation, monetary policy uncertainty, and slowing global growth weighed on performance, triggering a rotation away from higher-beta factors such as Momentum and Volatility toward more defensive areas including Value, Yield, and Quality.

February 2026 Factor Performance Analysis

Global equity markets displayed a shift in leadership dynamics during February. While the previous month was largely driven by Momentum and Volatility factors across most regions, February saw a more mixed factor environment, with performance drivers varying across markets. The period was also marked by a sharp sell-off in AI-related software stocks in the United States at the beginning of the month, which weighed on U.S. equity performance and disrupted the momentum trade. In contrast, Canadian equities emerged as the strongest-performing market among the regions analysed, highlighting the divergence in regional market dynamics during the period.

January 2026 Factor Performance Analysis

In January 2026, global equity markets delivered mixed performance, with Emerging Markets leading the way and the U.S. lagging behind as the weakest performer. Across regions, market movements were primarily driven by Momentum and Volatility factors, which dominated returns as investors responded to sector trends, macroeconomic signals, and market uncertainty. These factor dynamics underpinned much of the month’s performance, highlighting the continued influence of trending stocks and market swings on global equity outcomes.

Q4 2025 Sector Insights Dashboard

Introduction This report introduces the Sector Insights Dashboard, a new quarterly analysis that provides a clear, factor-based view of U.S. equity sector performance. Leveraging Style Analytics® data, the dashboard brings together sector weights, valuation dynamics, and factor exposures to highlight what is driving returns beneath the surface of the market. By combining cross-sector comparisons with security-level […]

Q4 2025 Factor Performance Analysis

In 2025, global equity markets were supported by easing inflation, stabilization, and a shift toward more accommodative monetary policy, which improved risk sentiment and valuations. Performance was broad-based across developed and emerging markets, with Europe and emerging markets rebounding strongly. Factor leadership widened, with Value and Momentum outperforming alongside selective Volatility, reflecting improved market breadth and renewed investor confidence.

November 2025 Factor Performance Analysis

In November 2025, global equity markets posted modest gains as investors shifted from expensive growth and technology stocks into more attractively valued sectors. Concerns over stretched AI and mega-cap valuations fuelled flows into value areas, such as financials and defensive sectors, aided by expectations of further rate cuts and resilient earnings in traditional industries. Consequently, Value broadly outperformed growth across developed markets, driven by valuation appeal and earnings stability amid mixed macro signals.

October 2025 Factor Performance Analysis

In October 2025, global equity markets posted modest to strong gains. The Federal Reserve’s decision to implement a 25-basis-point rate cut provided a notable boost to investor confidence, reinforcing risk appetite and supporting global equity valuations. This policy shift signaled a potentially more accommodative monetary stance. Emerging markets particularly benefited from the improved sentiment, aided by a weaker US dollar and strong performance within the semiconductor sector. Inflationary pressures continued to prove resilient, while sporadic geopolitical and trade-related uncertainties injected a measure of caution into market dynamics, tempering the otherwise constructive outlook for global equities.

Inside the world of GARP investing

Think of GARP — Growth at a Reasonable Price — like being a smart shopper or a savvy sports fan. You want quality, but you don’t want to overpay. Imagine you’re a baseball fan buying World Series tickets: GARP (Growth at a Reasonable Price) portfolios represent investment strategies that blend the key principles of both […]

Q3 2025 Factor Performance Analysis

Global equity markets posted strong performance in the third quarter of 2025, underpinned by a combination of easing trade tensions, excitement surrounding artificial intelligence (AI), and supportive monetary policy. One of the key drivers of market sentiment was the easing of global trade tensions. The extension of the U.S.–China trade truce, along with renewed agreements with other key trading partners, helped alleviate fears of supply chain disruptions and a slowdown in global commerce. Meanwhile, the ongoing boom in AI continued to energize markets, led by Volatility and Momentum across the international markets. Monetary policy remained a critical tailwind. The U.S. Federal Reserve implemented its first rate cut of the year and signalled the possibility of further easing, reinforcing global risk appetite.

August 2025 Factor Performance Analysis

Global equity markets posted broad-based gains in August 2025, as both developed and emerging markets advanced on the back of optimism surrounding monetary policy, solid corporate earnings, and easing geopolitical tensions.

Stablecoins: Bridging volatility and stability in the digital asset space

What are Stablecoins? Stablecoins are a specialized type of cryptocurrency designed to maintain a stable value by being pegged to a less volatile reference asset, usually a flat currency like the U.S. dollar (USD), short-term treasuries, or even commodities like gold. Unlike traditional cryptocurrencies that often experience dramatic price fluctuations, stablecoins aim to maintain a […]

July 2025 Factor Performance Analysis

While most regions delivered positive returns relative to the broader market in July, overall performance declined compared to June. The slowdown was most pronounced in Europe and emerging markets, where heightened tariff and trade uncertainties weighed on sentiment. In contrast, UK equities stood out, benefiting from a more favourable trade environment following the announcement of a positive trade agreement with the U.S., which helped reduce tariff-related concerns.

Q2 2025 Factor Performance Analysis

This quarter was marked by heightened market volatility as investors navigated ongoing tariff policy uncertainty and conflict in the Middle East. The April 2 ‘Liberation Day’ tariff announcement—marking a major policy shift—triggered a sharp market selloff. However, renewed investor confidence and a strong earnings season eventually drove a rebound, particularly in mega-cap tech stocks. After lagging in Q1 2025, the ‘Magnificent 7’ delivered strong returns. While U.S. equities and bonds recovered from April’s turbulence, the U.S. dollar continued to weaken, boosting international equities returns for dollar-based investors as foreign currency gains added to performance. All major equity regions posted positive returns for the quarter, with Emerging Markets leading the way.

May 2025 Factor Performance Analysis

Global markets continued their rebound in May, as consumer sentiment improved and trade tensions showed signs of easing during the period. Despite this progress, the broader economic outlook remains uncertain. Ongoing trade negotiations offer some hope, but the threat of higher tariffs looms if agreements aren’t reached.

April 2025 Factor Performance Analysis

Market volatility spiked to post-pandemic highs in early April, but a partial recovery followed the announcement of a 90-day pause on tariff hikes. Despite this, the U.S. market underperformed for the month, weighed down by uncertainty surrounding global trade policy, which dampened consumer and investor confidence. Among developed markets, the U.S. lagged behind peers like the UK and Europe.

Q1 2025 Factor Performance Analysis

The first quarter of 2025 introduced renewed volatility to both U.S. and global equity markets. Lingering economic uncertainty—combined with March’s aggressive tariff announcements—reshaped investor psychology and rippled across regional factor trends. In stark contrast to the Momentum-fueled gains of 2024, Q1 marked a pivot toward defensiveness, as High-Yield and Value factors led the way.

A closer look at the defense and aerospace industry

Growing focus on defense sector The defense and aerospace sector is generally more stable than other industries, as it is less affected by economic cycles. It also offers a diversified approach to portfolios while providing exposure to Large-cap companies with stable revenue. These stocks often increase in value due to geopolitical tensions and conflicts. In […]

February 2025 Factor Performance Analysis

February began with rising concerns over a potential global trade war, fuelled by threats of tariffs on U.S. imports from Canada and Mexico. U.S. equity markets showed mixed performance amid ongoing economic uncertainties and policy shifts, reflecting investor worries about potential tariffs and economic growth.

January 2025 Factor Performance Analysis

The first month of 2025 saw strong returns in the equity markets, driving new all-time highs globally. Notable gains were in the United States and Eurozone. Factor trends have diverged from last year’s patterns across all regions, with Large-cap equities leading the markets in January.

The impact of tariffs on the market: Lessons from 2018-2019 and what it means for Trump 2.0

What does recent history tell us, about the potential impact of tariffs during Trump 2.0? In 2018, President Donald Trump imposed sanctions on various products using a broad range of seldom-used US trade laws, citing the need to protect America’s national security. This sparked a trade war that led to multiple disputes with China and […]

Q4 2024 Factor Performance Analysis

Q4 2024 was marked by momentum-led gains in U.S. equities, regional divergences in performance across Europe and emerging markets, and significant factor-driven returns globally. This report analyzes these dynamics to help investors prepare for 2025’s uncertainties.

November 2024 Factor Performance Analysis

The US election results were the key influence on market performance in November. Donald Trump’s presidential victory, combined with the Republican party securing a majority in both chambers of Congress, fuelled expectations that the upcoming administration’s policies would bolster the U.S. economy and strengthen market performance.

MAGA Two.0

Although U.S. elections have always been highly significant for both global and national stock markets, the president’s influence on the economy and markets is typically indirect and limited. While changes in the White House create uncertainty in the markets, and uncertainty is generally bearish, changes caused through fiscal policy and economic agendas have a more […]

October 2024 Factor Performance Analysis

In October, stock market volatility rose, even as stocks briefly hit new highs across the globe. Geopolitical uncertainty loomed throughout the month as the US presidential elections approached, investors keeping a close watch on potential impacts on trade and regulatory changes. Historically, market volatility tends to rise ahead of elections as investors assess potential outcomes.

Q3 2024 Factor Performance Analysis

Global equities posted gains in Q3 2024, despite experiencing periods of significant volatility throughout the quarter. Volatility outperformed in all regions during September, while the quarterly outperformance was distributed across various factors. Inflation continues to ease across global economies, which are benefitting from the recent declines that have significantly increased real incomes. Emerging markets and Canada delivered notable performance results in the third quarter of this year.

Japanese equities in the wake of interest rate changes

Japanese equities began the year with steady gains, driven by strong earnings and optimism around wage increases. After surpassing its 1989 peak in late February, the market experienced a decline by the end of July 2024, shortly followed by the biggest single-day retreat in early August, highlighting the market’s volatile nature.

August 2024 Factor Performance Analysis

Following a weak U.S. labour market report early in August, the global equity markets experienced volatility, a pullback in US and Europe persisted into the first week of August due to the heightened concerns about a potential recession, but most indices recovered a significant portion of their losses by the end of the month.

July 2024 Factor Performance Analysis

After reaching new highs early on, global stocks gave back some of their monthly gains in the second half of July. The US market favored Value and Yield, while Europe saw outperformance in Growth and Size. The UK market mirrored the US, demonstrating outperformance In Value and Yield. Emerging Markets were led by Value, Yield and Size. Canada exhibited a contrasting trend compared with its peers, with a notably larger factor premium for Quality and Momentum.

Q2 2024 Factor Performance Analysis

In Q2 2024, global equity markets continued to rise, with the MSCI ACWI returning just above 10%. The US market favored Growth, Quality, and High Momentum stocks, while Europe saw outperformance in Growth and Size. The UK market mirrored the US, demonstrating outperformance in Growth, Quality, and Size. Emerging Markets were led by Momentum, followed by Size. Canada exhibited a contrasting trend compared with its peers, with a notably larger factor premium for Yield.

Amplifying diversity – women in portfolio management

Although portfolio management has traditionally been a male-dominated industry, there is strong evidence suggesting that historically, funds managed by women have outperformed those managed by men. A study by Goldman Sachs found that 48% of female-managed funds outperformed the market during a specific period, compared to only 37% for all-male funds. Women-led funds also demonstrated […]

May 2024 Factor Performance Analysis

After experiencing a decline in April, equity markets saw a rise in May, with US and European markets outpacing other regions. Big tech stocks once again delivered strong performances, accounting for over half of the S&P 500’s gain in May. The US Dollar Index declined in May, for the first time in 2024, with the dollar weakening against most major currencies.

April 2024 Factor Performance Analysis

The equity markets witnessed a reversal in factor trends through April, with the Momentum surge ultimately ceasing. As shown in Figure 1 below, the trend in Developed World equity markets has transitioned from Momentum to Value.

The blueprint for ethical investment

Sustainable investment, particularly in renewable energy, emerged as the most rapidly expanding theme in Foreign Direct Investment in 2021. Today, present-day investors continue to rebolster support – with 85% of CFA Institute members stating that they integrate sustainability considerations when making investment decisions (CFA Institute, 2023). 

Cyclicals vs. defensives in rising interest rates

The macroeconomic backdrop holds a paramount influence on driving growth and value factor performances. Among these, interest rates have had the most profound effect, as shown in the charts below. Changes in interest rates from 2022 to 2023 have predominantly guided the returns of Large Cap Growth and Large Cap Value portfolios: Job reports are […]